Many kinds of condition monitoring technique as the preventive maintenance technique have been studied, so this study has investigated the possibility of chbcking the trend in the fault diagnosis of ball bearing, one of the important elements of rotating machine, by applying the cepstral analysis method. And computer simulation is conducted in order to identify obviously the physical meaning of cepstral analysis. It is identified that cepstral analysis is effective method to distinguish between the basic and reflected wave by computer simulation, and we know that it is possible to apply the cepstral analysis to the arbitrary elements of rotating machine which are different in fundamental frequency. It is verified that cepstral analysis method is more effective than the other conventional method in bearing fault diganosis.